i am interested in building a team for the 2010 season and was wondering about the not fo profit status to make sponsers donations tax deductable could i get some info please.
You need to file form 1023 with the IRS. It will cost $750 to file, and I suggest having an accountant fill it out for you.
501(c)(3) status is very, very difficult to obtain. If your business is based on playing (adult) semi-pro football, you won't find an easy road ahead.
The Southern Michigan Timberwolves are a non-profit, as are we, but I believe we're the only two in Michigan, however many, many teams (falsely) claim to be.
I wish you the best of luck. Please keep me abreast of your progress.
try this link for help
best of luck.
We actually filed 501 c 4. it is more relevant and easier to obtain. it takes 4-6 months for all the paperwork and decisions on your app to process. the irs website is a great help and you can call with questions. It is a little expensive to do.
Its really not worth the hassel. Being non profit did not get us any more sponsors(donations) than before. Also, companies that dontate can write off the expense as advertising anyway.
Right. It is a little bit of a misconception that going non-profit = big sponsor $$$'s... I know that with my company, giving sponsor $$$'s and simply paying for advertisement = the same write off - as an expense. No more of an advantage to say it's to a non-profit.
The biggest advantage of getting a non-profit status is you don't have to pay federal or state taxes... but you still have to do the paper work... don't forget...
to be a 501(c)3 is where you can get tax deductible donations ... the other 501(c)4 to 501(c)14 are non-profit but donations are non-tax deductible.
The biggest advantage to having a tax deductible organization is that all the money and mileage board members spend to run the organization is tax deductible on your personal taxes. Not all sponsors are businesses, and don't you want to get money for all the millage you drive to and from football practices and games?
Disclaimer: this is not professional advice and not all teams, members, or players have the ability to count miles driven off on their taxes. Always consult your lawyers and accountants before you start to assume.